Reasons for the Fall in Pi Network Prices: Is There a Problem with Loss of Community Trust?

The price of Pi Network (PI) recently dropped sharply by almost 50% within hours. Many are wondering: why did Pi Network’s price fall so drastically? This phenomenon is not just ordinary fluctuation.

A combination of liquidated leveraged trades, thin market liquidity, and weakening community trust became the main driver. To understand this more deeply, let’s discuss the factors that triggered the crash in Pi’s value and what we can learn from this situation.

Read also: 7 Effective Crypto Trading Strategies for Beginners, Complete with Tips and Tricks

What Is Pi Network?

Pi Network is a cryptocurrency project designed to let anyone mine coins from their phone without expensive hardware. Launched by a team of academics from Stanford, the project went viral for claiming it would become the “next Bitcoin” for mobile users.

However, until now, Pi is still in the development phase and has not been officially listed on major exchanges. Many Pi tokens traded on exchanges are considered “Pi IOUs,” or do not yet represent the actual mainnet coins. This creates major uncertainty in the market.

Reasons Why Pi Network’s Price Fell

The drastic drop in Pi Network’s price was caused by a combination of structural and psychological factors, including:

• Liquidation of leveraged trades: Some traders used high leverage for speculation. When the price dropped slightly, their positions were liquidated, triggering a domino effect of forced selling.
   
• Thin market liquidity: The circulating supply of Pi coins on exchanges is still very limited. Even minor movements can have a major impact on price.
   
• Unmigrated supply: A large portion of Pi tokens is still locked in the app, creating selling pressure from parties who already have earlier access to the tokens.
   
• Erosion of community trust: Divisions have emerged among users — some do not believe that the Pi being traded on exchanges is “authentic.”
   
• A founder debut that fell flat: The founders’ first public appearance in Seoul, instead of reigniting enthusiasm, failed to restore market sentiment.
   

All these factors combined to create a “perfect storm” for Pi Network, pushing its value down to the range of US$0.2751 on 23 September 2025.

Pi Network Price Outlook

Although the crypto market is known for volatility, analysts expect Pi Network’s price to remain unstable until the project fully opens access to its mainnet and liquidity improves.
Recovery potential still exists, but it depends heavily on three key points:

• Regulatory clarity and the legal status of Pi tokens on exchanges.
• Progress in migrating coins to the mainnet.
• Restoring community trust through transparency from the development team.
   

If these steps are executed well, it is possible for Pi’s price to rebound toward the US$0.35–US$0.40 range in the medium term. However, without fundamental changes, selling pressure could continue.

Read also: How to Trade Crypto: A Complete Guide for Beginners

Pi Network Founders’ Debut Fell Completely Flat

The Pi x Sign Meetup event in Seoul, which was supposed to be a milestone moment for Pi Network, instead became a negative turning point. The founders appeared in front of the community to share their vision for the future of Web3, but the event failed to generate positive sentiment in the market.

Many community members felt that the message delivered did not address the fundamental question: when will Pi actually become openly tradable on a global scale and verifiable on a public blockchain?

Instead of building optimism, this debut reinforced doubts that Pi Network may not yet be ready to face the realities of an open market.

Conclusion

The drop in Pi Network’s price shows that community strength alone is not enough without healthy market structure and transparency from the developers. Although Pi still has potential, recovery will require real work — not just promises.

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FAQ

What Is Pi Network?

Pi Network is a blockchain project that allows users to mine coins directly from their phones, with a vision to build a decentralized digital economy.

Why Did Pi Network’s Price Drop?

Because of a combination of leveraged liquidation, low liquidity, and declining community trust.

Can Pi Network Be Traded Yet?

Not fully. The versions circulating on exchanges are still IOUs or token representations, not the official mainnet coins.

What Is the Pi Network Price Outlook Going Forward?

The price could recover if the project successfully opens the mainnet and restores community confidence.

What Can We Learn from Pi Network’s Crash?

Investors must understand the risks, do research before buying, and not rely solely on community hype.